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Testimonials

PRACTICE AREA: REAL ESTATE

Kyana Stewart

Joe Pioletti helped us win a case with a notorious realty, he was very honest and forthright about the terms of the case. He kept us up to date with the court date and made a great offer on our behalf. We received our settlement in a timely matter as well! Take a chance with Pioletti, you won't regret it!

-Robert, a Construction Client

Our Condo HOA was involved in a long running, complex, and very expensive lawsuit with our Developer, Builder and Archchitect. We were not pleased with our previous Lawyers and shopped around for someone with construction experience. We found Jeff and he has been terrific. We are very pleased to have him as our lawyer and....

Testimonials

Practice Area: Real Estate

Joe Pioletti helped us win a case with a notorious realty, he was very honest and forthright about the terms of the case. He kept us up to date with the court date and made a great offer on our behalf. We received our settlement in a timely matter...

Kyana Stewart

JOE PIOLETTI

Knows exactly what he's doing. Always available, very knowledgeable, and produced the result I wanted. Joe is the man, I would recommend him to anybody.

Practice Area: Criminal Defense

Very Helpfull

Joe was very responsive, unflappable, and level-headed. He helped me through an extremely difficult time and sought -- and obtained -- the outcome I needed. Thank you, Joe!

Why Do I Have To Pay Back Unsecured Creditors If I Filed Bankruptcy?

If you cannot afford to pay your debts, bankruptcy offers a legal means for obtaining a financial fresh start by discharging your debts. Bankruptcy cases are governed by federal law and cases are handled by a federal bankruptcy court. Filing a bankruptcy case immediately stops all collections efforts by your creditors including actions to repossess or foreclose on property. In many cases, debtors are not required to pay back unsecured creditors; however, not all bankruptcy cases are the same.

Do I Have to Pay Back Unsecured Creditors in a Chapter 7 Bankruptcy Case?

A Chapter 7 bankruptcy is also known as a “straight bankruptcy” or a liquidation bankruptcy. The reason for this is that in a Chapter 7 bankruptcy case, the trustee assigned to the case reviews the debtor’s assets to determine if any of the assets have equity that is not exempt. If so, the trustee liquidates those assets and he uses the funds to pay back unsecured creditors. However, in almost all Chapter 7 cases filed in central Illinois, the debtor retains all of his or her property because the property is exempt.

In order to qualify to file a Chapter 7 case, the debtor must meet the income requirements of the Means Test. If the debtor passes the Means Test, this indicates that the debtor does not have disposable income, after paying his basic living needs each month, to pay toward his debt. Therefore, the debtor’s unsecured debts are discharged and he does not have to pay back unsecured creditors whose debts are discharged.

Do I have to Pay Back Unsecured Creditors in a Chapter 13 Bankruptcy Case?

In a Chapter 13 bankruptcy, the debtor does pay back unsecured creditors; however, the amount that is paid back is often far less than what the debtor owes. A debtor can choose to file a Chapter 13 case because he wants to protect non-exempt assets; however, most people file a Chapter 13 case because they did not pass the income requirement on the Means Test. In other words, the person had disposable income after paying his living expenses each month to pay toward his unsecured debts.

A Chapter 13 case is referred to as a reorganization because the debtor proposes a bankruptcy plan outlining how he will reorganize his debts into a plan that is manageable based on his income. In almost every Chapter 13 case filed in central Illinois, the debtor does not pay back unsecured creditors 100% of what he owes on each account. Instead, the debtor will pay back unsecured creditors pennies on the dollar depending on his disposable income and other factors. For some debtors, this could be a substantially lower amount than what is owed on the accounts. A bankruptcy lawyer work diligently to reduce the percentage a debtor will pay to unsecured creditors so the bankruptcy plan payment is as low as possible.

Contact Our Office for a Consultation with an Experienced Illinois Bankruptcy Attorney

When you need the assistance of an experienced bankruptcy attorney in central Illinois, call Pioletti & Pioletti. We are dedicated to providing our clients with exceptional service and support throughout the bankruptcy process.

Attorney Joe C. Pioletti was born and raised in Eureka, IL.Joe received his Bachelor of Arts Degree in Business Management from Eureka College where he also minored in Spanish.Joe then received his Juris Doctor from Southern Illinois University School of Law.While in law school Joe worked in the Domestic Violence Advocacy Clinic and was a three-time recipient of the Charter Class Campaign for Academic Excellence Scholarship.